DigitalOcean Holdings Inc (DOCN)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021
Operating income (ttm)	US$ in thousands	91,007	69,457	80,319	56,490	11,896	-10,455	-38,725	-45,169	-25,697	-24,470	-33,339	-28,024	-11,186
Revenue (ttm)	US$ in thousands	780,615	756,564	735,142	712,480	692,884	675,008	650,061	614,129	576,322	532,986	492,299	462,227	428,561
Operating profit margin		11.66%	9.18%	10.93%	7.93%	1.72%	-1.55%	-5.96%	-7.35%	-4.46%	-4.59%	-6.77%	-6.06%	-2.61%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $91,007K ÷ $780,615K
= 11.66%

The operating profit margin of DigitalOcean Holdings Inc has shown a fluctuating trend over the period from December 31, 2021, to December 31, 2024. Initially, the company experienced negative operating profit margins, indicating that the expenses exceeded the operating profits.

From December 31, 2021, to March 31, 2023, the operating profit margins remained in negative territory, with the lowest point at -7.35% in March 31, 2023. This suggests that the company was facing challenges in generating profits from its core operations during this period.

However, a turnaround was evident starting from December 31, 2023, when the operating profit margin turned positive at 1.72%. The positive trend continued from that point onward, reaching a significant uptick in profitability with an operating profit margin of 11.66% by December 31, 2024.

This improvement in operating profit margin over the latter part of the period indicates that DigitalOcean Holdings Inc was able to enhance operational efficiency, control costs, and increase revenues relative to its operating expenses. The positive operating profit margin by the end of the period signals a more sustainable level of profitability and operational performance for the company.